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Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $59.63, moving +1.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.
Shares of the web security and content delivery company witnessed a gain of 1.64% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.22% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. The company is predicted to post an EPS of $0.10, indicating a 66.67% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $330.54 million, indicating a 30.21% increase compared to the same quarter of the previous year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +184.62% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 157.8. This indicates a premium in contrast to its industry's Forward P/E of 36.48.
Meanwhile, NET's PEG ratio is currently 2.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.42.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know
Cloudflare (NET - Free Report) closed the most recent trading day at $59.63, moving +1.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.
Shares of the web security and content delivery company witnessed a gain of 1.64% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.22% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. The company is predicted to post an EPS of $0.10, indicating a 66.67% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $330.54 million, indicating a 30.21% increase compared to the same quarter of the previous year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +184.62% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 157.8. This indicates a premium in contrast to its industry's Forward P/E of 36.48.
Meanwhile, NET's PEG ratio is currently 2.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.42.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.